Profit factor 1.47
Instrument: Forex
Supported platforms: MetaTrader 4, MetaTrader 5, StrategyQuant
Strategy description
This Brent H1 strategy is a clean, rules-based breakout system designed to participate only when momentum and price structure align.
It combines a MACD signal shift with a Bollinger Bands–based breakout trigger, and it executes through pending STOP orders to avoid guessing direction before the market confirms the move.
The strategy was built and backtested on Brent / H1 over the window 2017-12-08 to 2025-08-22, with a simple and consistent risk model driven by volatility.
Core logic
The system uses two layers:
1) Setup filter (confirmation layer)
It waits for a MACD Main vs. Signal cross, then checks that price is positioned in a “safe zone” relative to Bollinger Bands (to avoid chasing already-extended spikes).
- Long setup
- MACD Main crosses above Signal
- and the previous bar Open is below the Upper Bollinger Band (BB period 83, deviation 2.1, PRICE_CLOSE)
- Short setup
- MACD Main crosses below Signal
- and the previous bar Open is above the Lower Bollinger Band (BB period 83, deviation 2.1, PRICE_CLOSE)
2) Entry trigger (breakout execution)
Instead of entering at market, the strategy places STOP pending orders at dynamic breakout levels derived from wider Bollinger Bands:
Entries
- LONG: place a Buy Stop at Upper Bollinger Band (period 101, deviation 2.66)
- SHORT: place a Sell Stop at Lower Bollinger Band (period 101, deviation 2.66)
Order handling rules:
- Pending orders are valid for 22 bars
- Duplicate trades are disabled
- Replacing existing pending orders is allowed
Risk management & exits
- Stop-loss:
2.1 × ATR(25)(volatility-based) - Profit target: 90 pips
- Friday risk control: forced exit on Friday at 19:00 (reduces weekend gap exposure)
Who this strategy is for
If you want a Brent system that:
- uses a momentum confirmation (MACD cross),
- enters only after real breakout confirmation (STOP order at Bollinger edge),
- and keeps risk controlled with ATR-based stop-loss + Friday cutoff,
this strategy is a straightforward approach aimed at capturing the bigger directional moves without overtrading noise.
Key settings (quick recap)
- Symbol / TF: Brent / H1
- Backtest window: 2017-12-08 to 2025-08-22
- MACD: (fast 24, slow 26, signal 9)
- Setup Bollinger Bands: period 83, deviation 2.1
- Entry Bollinger Bands: period 101, deviation 2.66
- Pending order validity: 22 bars
- SL: 2.1 × ATR(25)
- PT: 90 pips
- Friday exit: 19:00
